Telecom Italia could be eyeing European opportunities

3 Feb 2015

The chief executive of Telecom Italia (TI) has said that the firm is more likely to consider mergers and acquisitions in Europe than in Brazil, where its TIM Brasil unit has repeatedly been linked as a potential candidate for tie-ups with other operators. Marco Patuano says a price war is encouraging consolidation in Europe, Reuters writes citing a report from Brazilian newspaper Valor Economico. When asked about the situation regarding TIM Brasil, Patuano commented: ‘Telecom Italia’s style is to stand still in the middle of the storm,’ suggesting that no moves are afoot to enlarge the Brazilian subsidiary via acquisitions or mergers. Patuano added that TI’s attention would instead turn to its domestic mobile division TIM: ‘At this moment, the situation suggests that the best option for us is to focus on TIM.’

Separately, TI has won a EUR75 million government-backed contract to deploy broadband networks on the island of Sicily. The deal covers 142 municipalities, 82 more than originally planned under the government’s scheme. Funding is being provided by the European Regional Development Fund (ERDF).

Brazil, Italy, Telecom Italia (TIM), Telecom Italia Group (TIM Group), TIM Participacoes (TIM Brasil)